velocity - Investment & Finance Definition

The rate at which a given dollar changes hands during a certain period of time.
The faster money turns over, the
higher the velocity. A higher velocity is associated with a higher dollar
volume of transactions and could lead to inflation. Velocity is calculated by
dividing gross domestic product by money supply. Economists who subscribe to
monetarism believe that the changes in velocity are fairly predictable, and
they study the causes of money growth and changes in velocity to estimate
future economic growth.

Sentence Examples

The wind velocity did not exceed 20 km.

The concentration is known, and the conductivity can be measured experimentally; thus the average velocity with which the ions move past each other under the existent electromotive force can be estimated.

Simspon concluded that for a given wind velocity dissipation is practically a linear function of ionization.

The other forms of velocity anemometer may be described as belonging to the windmill type.

When he considered all days irrespective of wind velocity, Mazelle found the influence of temperature obliterated.